Those New to Managing Inventory and Inventory controllers
Those Non-inventory people who need to gain an awareness of the issues and key drivers of stock control operations
Logistics, Warehouse and Distribution Professionals
Programme Overview
The efficient management of inventory and material planning has a major impact on supply chain performance and resultant cost. Poor inventory management will result in high inventory carrying cost and low rate of customer order fulfilment. Carrying inventory comes with a certain degree of commercial risk. Excess, obsolete and mismanaged inventory will result in a reduction in the company equity. It is important for businesses to evaluate the costs of carrying inventory and reduce the cost to improve the company’s bottom line.
Good management of inventory enables companies to improve their customer service, cash flow and profitability. 'Best Practices in Inventory Management' outlines the basic techniques, how and where to apply them, and provides advice to ensure they work to produce the desired effect in practice.
Objectives
By attending this training course, delegates will be able to:
Understand objectives of the modern inventory management and stock control
Insight on demand planning, the role of finance, cost implications and customer service
Formulate inventory classifications, types of demand and various factors affecting the demand
Applications of forecasting techniques to determine demand and efficient management of lead-time
Understand modern inventory systems, methods, and their applications
Establish optimum order quantity, safety stock and reorder point to maximise inventory turn
Understand various stock controlling tools and techniques to eliminate waste, improve efficiency and cost of warehouse operations
Learn inventory management best practices to help you to reduce cost, increase productivity and customer satisfaction
Establish inventory management performance (KPIs) and continues improvement measures
Methodology
This practical and results-oriented program is based on the adult learning concept. This course will be presented using a combination of lectures, practical/hands-on approach such as role-plays, case studies, presentation, and video. Practical cases and examples illustrate the variety of current practices and build individual capabilities. There will be ample time for Q&A, discussions with ‘return to work’ action planning. The program will reinforce key concepts within an inspiring and engaging learning environment.
Course Outline
The basis of inventory control
The role of inventory management
Objectives for inventory control
Profit through inventory management
Reasons for the current stock
Customer service
Meeting customer requirements
Measuring availability
Demand management
Managing the inventory
Using Pareto analysis for control
Stock cover
Practical methods for reducing stockholding
The approach – how to reduce stocks successfully
Just-in-time management
The zero inventory philosophy
JIT environment
Advantages of JIT
Stock control using JIT
Organization and management
Where stock control fits into the organiztion
Responsibilities
And targets
Inventory valuation
Skills and systems
Safety stocks
Learning from history
Normal demand patterns
Evaluation of safety stocks
Setting the right stock levels
Simple assessment of review levels
Managing lead times
Target stock levels
The changing role of purchasing
Modern supply practice
Supply partnerships
The ordering process
Order quantities
Purchasing processes
Forecasting demand
Options for assessing demand
Causes of forecasting techniques
Methods of improving forecasts
Historical forecasting techniques
Basic forecasting techniques
Weighted averages
Choosing the best forecast
Monitoring forecasts
Advanced forecasting methods
More forecasting tools
Forecasting for seasonal sales
Other methods
Material requirements planning – an alternative to forecasting
